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How much retirement income may my 401(k) provide?

It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Further, it may be useful to estimate your future monthly income generated by these savings and what that means in today's dollars.

Assumptions

Years until retirement

Current annual income ($)

Annual salary increases (%)

Current 401(k) balance ($)

Current 401(k) plan contribution (%)

Pay period frequency

Employer match (% of gross income) (%)

Annual before-tax return: conservative (%)

Annual before-tax return: moderate (%)

Annual before-tax return: aggressive (%)

Years during retirement

Return during retirement (%)

Estimated inflation (%)

Results

By contributing 4.0% of your salary to your retirement plan you may accumulate a plan balance of 485,445 at retirement at an out-of-pocket cost of just 95,151.

401(k) analysis	(%)	($)
Your contribution	4.0%	2000
Employer match	3.0%	1500
Your cumulative contributions	95,151
Employer cumulative contributions	71,363

	Conservative (5%)	Moderate (8%)	Aggressive (11%)
Accumulation value at retirement	348,147	577,236	993,833
Estimated monthly income at retirement	2,555	4,236	7,292
Present value of monthly income adjusted for inflation	1,816	3,011	5,184